Please in paragraph form, not bullets, answer the following question (in your own words)! I Will give thumbs up I really need help. (8)

Explain three primary reasons firms diversify.

Describe how firms can create value by using a related diversification strategy. (Economies of Scope, Value is created from economies of scope through operational relatedness in sharing activities. Corporate relatedness in transferring skills or corporate core competencies among units. The difference between sharing activities and transferring competencies is based on how the resources are jointly used to create economies of scope.)

Explain the two ways value can be created with an unrelated diversification strategy. (Financial Economies)